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Rail News Home Federal Legislation & Regulation

4/25/2025



Rail News: Federal Legislation & Regulation

Duffy warns USDOT funding recipients: Cooperate with ICE, terminate DEI


Duffy's letter reminded federal transportation funding recipients to follow federal laws and policies or risk losing those dollars.
Photo – U.S. Department of Transportation

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U.S. Transportation Secretary Sean Duffy yesterday warned recipients of federal transportation funding that they must comply with federal legal obligations and policies or risk losing those grant dollars.

Federal law and policies that must be followed include the Trump administration's enforcement of U.S. immigration laws, as well as prohibition of diversity-equity-inclusion (DEI) programs, Duffy said in a letter to U.S. Department of Transportation funding recipients.

On immigration, the letter states that recipients must cooperate with U.S. Immigration and Customs Enforcement (ICE) and other components of the Department of Homeland Security.

"DOT has noted reported instances where some recipients of federal financial assistance have declined to cooperate with ICE investigations, have issued driver’s licenses to individuals present in the United States in violation of federal immigration law, or have otherwise acted in a manner that impedes federal law enforcement," the letter states. "Such actions undermine federal sovereignty in the enforcement of immigration law, compromise the safety and security of the transportation systems supported by DOT financial assistance, and prioritize illegal aliens over the safety and welfare of the American people whose Federal taxes fund DOT’s financial assistance programs.”

On DEI programing, the letter states the following: "Whether or not described in neutral terms, any policy, program, or activity that is premised on a prohibited classification, including discriminatory policies or practices designed to achieve so-called 'diversity, equity, and inclusion,' or 'DEI,' goals, presumptively violates federal law." USDOT funding recipients must ensure that their personnel practices do not discriminate based on "prohibited categories," the letter states.

"Recipients are also precluded from allocating money received under DOT awards — such as through contracts or the provision of other benefits — based on suspect classifications," the letter adds.

Duffy's letter notes that the department distributes such funds to entities "including but not limited to states and local governments."

The secretary encouraged recipients to contact the USDOT promptly if they're unsure of their obligations.

 "Proactive engagement is strongly advised to prevent inadvertent noncompliance," his letter states.

Click here to download Duffy's letter.



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